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10.06.2025.
The Croatian Bank for Reconstruction and Development (HBOR) and the Council of Europe Development Bank (CEB) signed today a new loan agreement, in the amount of EUR 250 million, intended to support strategic investments in micro, small and medium-sized enterprises, municipal infrastructure and affordable housing in Croatia.
Through HBOR, the new CEB loan will co-finance public and private sector investments. On the one hand, this will concern investments by local governments in public infrastructure - from schools and healthcare institutions to utility networks and housing, while the second key objective is to continue strengthening the competitiveness of micro, small and medium-sized enterprises as the main drivers of employment and economic resilience in Croatia. By facilitating access to finance for investments in production and working capital, the loan will support SMEs in overcoming the consequences of the recent global and domestic crises and keeping a key role in maintaining employment.
Furthermore, with the help of this loan, cities and municipalities will be encouraged to invest in housing in order to support the development of a more dynamic and inclusive housing system in Croatia given the structural shortage of affordable housing units, especially in urban centres and among vulnerable groups.
“The cooperation with the CEB is of great strategic importance for HBOR based on a shared understanding of the role of development banks in strengthening social cohesion and ensuring long-term benefits for citizens. We highly value this partnership, not only for the financial support, but also for the expertise and focus that the CEB brings in the field of sustainable development,” said Hrvoje Čuvalo, President of HBOR’s Management Board.
This loan is the tenth in a long-standing cooperation between HBOR and CEB, one of the Bank’s most prominent and reliable partners in Croatia and the wider region, and discussions are currently underway on future initiatives aimed at further strengthening of social inclusion and Croatia’s strategic priorities in the areas of public health and housing.
The total value of CEB’s loans to HBOR has now reached EUR 1 billion, and these funds have supported more than EUR 2 billion in investments in social inclusion projects across the country.
“This new loan builds on the past two decades of successful cooperation with HBOR,” Carlo Monticelli, Governor of the CEB, stressed on the occasion. “It reflects not only the shared operational goals of our institutions, but also a shared broader long-term strategy - investing in the local community, improving the economy and sustainable systems,” concluded Monticelli.
About the CEB
The Council of Europe Development Bank (CEB) is a multilateral development bank with a unique mission of promoting social cohesion in its 43 member states across Europe. The CEB finances investments in social sectors, including education, healthcare and affordable housing, with a particular focus on the needs of vulnerable groups. The beneficiaries of its funds include governments, local and regional authorities, public and private banks, non-profit organisations and other entities.
As a multilateral bank with an excellent credit rating, the CEB is financed on the international capital markets. It approves projects in accordance with the strict criteria of social, environmental and governance responsibilities and provides technical assistance. In addition, the CEB uses also donor funds to further complement its activities.
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The Croatian Bank for Reconstruction and Development (HBOR) and the Council of Europe Development Bank (CEB) signed today a new loan agreement, in the amount of EUR 250 million, intended to support strategic investments in micro, small and medium-sized enterprises, municipal infrastructure and affordable housing in Croatia.
Through HBOR, the new CEB loan will co-finance public and private sector investments. On the one hand, this will concern investments by local governments in public infrastructure - from schools and healthcare institutions to utility networks and housing, while the second key objective is to continue strengthening the competitiveness of micro, small and medium-sized enterprises as the main drivers of employment and economic resilience in Croatia. By facilitating access to finance for investments in production and working capital, the loan will support SMEs in overcoming the consequences of the recent global and domestic crises and keeping a key role in maintaining employment.
Furthermore, with the help of this loan, cities and municipalities will be encouraged to invest in housing in order to support the development of a more dynamic and inclusive housing system in Croatia given the structural shortage of affordable housing units, especially in urban centres and among vulnerable groups.
“The cooperation with the CEB is of great strategic importance for HBOR based on a shared understanding of the role of development banks in strengthening social cohesion and ensuring long-term benefits for citizens. We highly value this partnership, not only for the financial support, but also for the expertise and focus that the CEB brings in the field of sustainable development,” said Hrvoje Čuvalo, President of HBOR’s Management Board.
This loan is the tenth in a long-standing cooperation between HBOR and CEB, one of the Bank’s most prominent and reliable partners in Croatia and the wider region, and discussions are currently underway on future initiatives aimed at further strengthening of social inclusion and Croatia’s strategic priorities in the areas of public health and housing.
The total value of CEB’s loans to HBOR has now reached EUR 1 billion, and these funds have supported more than EUR 2 billion in investments in social inclusion projects across the country.
“This new loan builds on the past two decades of successful cooperation with HBOR,” Carlo Monticelli, Governor of the CEB, stressed on the occasion. “It reflects not only the shared operational goals of our institutions, but also a shared broader long-term strategy - investing in the local community, improving the economy and sustainable systems,” concluded Monticelli.
About the CEB
The Council of Europe Development Bank (CEB) is a multilateral development bank with a unique mission of promoting social cohesion in its 43 member states across Europe. The CEB finances investments in social sectors, including education, healthcare and affordable housing, with a particular focus on the needs of vulnerable groups. The beneficiaries of its funds include governments, local and regional authorities, public and private banks, non-profit organisations and other entities.
As a multilateral bank with an excellent credit rating, the CEB is financed on the international capital markets. It approves projects in accordance with the strict criteria of social, environmental and governance responsibilities and provides technical assistance. In addition, the CEB uses also donor funds to further complement its activities.